Communities in New Jersey, especially small and rural ones, often seek to have companies relocate to their region in an effort to create jobs and economic success for their communities. In many cases, the companies promise a great number of jobs for those who live in the town. When the promises are kept, towns are able to build and grow. When that does not happen, some find that they cannot repay the debts that they have accumulated while waiting to obtain new employment. This leads to a filing of a personal bankruptcy for some.
In one recent case from another state, a company came to a town promising that they would bring some 400 jobs. To get the company to relocate, the town offered monetary incentives. Unfortunately, the jobs never materialized and the company closed its doors in 2011.
The former owner of the company at the heart of this matter recently filed for a personal bankruptcy. In his filing, he noted that he had obtained an estimated $1 to $10 million in debts. This was opposed to his $100,000 to $500,000 in assets that were disclosed.
Those who hoped to obtain jobs from his venture may also have accumulated debts, even if they were not as high as those of the former company owner. They, like the man here, may find it helpful to file for a personal bankruptcy. As is the case for similar folks in New Jersey, the filing can offer protections to those that need it and allow them to begin a fresh financial start — an important opportunity during tough economic times when the search for a new job can take time.
Source: wjhg.com, “Former Redpine Owner Files for Personal Bankruptcy,” Cameron Taylor, May 21, 2013